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EnviTec Biogas AG

Quarterly Report Aug 29, 2013

5391_10-q_2013-08-29_83dd9c86-a457-4f19-9537-087d59775068.pdf

Quarterly Report

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INTERIM REPORT

Preposition Group Interim Business Report Interim Financial Statements Notes

INTERIM REPORT BUSINESS YEAR 2013

of EnviTec Biogas AG for the period from 01 January to 30 June 2013

Financials

(m Euro) Q2 2013 Q2 2012 Development
Sales revenue 35.3 43.3 -8
Gross result 14.7 14.8 -0.1
EBITDA 3.1 2.6 0.5
EBIT -0.6 -0.1 -0.5
Surplus -0.8 0.5 -1.3
Employees (number) 359 470 -111
Order pipeline 98.8 182.2 -83.4
thereof "Own Plant Operation" 6.1 29.6 -23.5
thereof abroad 30.5 106.8 -76.3
Order intake 23.9 45.6 -21.7
thereof abroad 10.4 36.2 -25.8
Order cancellations 3.4 0 3.4
Orders completed 10.7 27.5 -16.8

Preposition Group Interim Business Report Interim Financial Statements Notes

CONTENT

Overview 04
Preposition 06
Group interim business report
1. Corporate structure 10
2. Macroeconomic and sector performance 10
3. Business performance in the first half year 11
4. Earnings, Net Worth and Financial Positions 13
5. The EnviTec share 15
6. Related party disclosures 16
7. Opportunity and Risk Report 16
8. Post balance sheet events 17
9. Forecast report 17
Interim financial statements
Consolidated profit and loss account 20
Consolidated statements of comprehensive income 21
Consolidated balance sheet 22
Consolidated equity capital change statement 24
Consolidated capital flow statement 26
Notes 29
Financial Calendar, Imprint 42

DEAR SHAREHOLDERS AND FRIENDS OF ENVITEC BIOGAS AG,

The situation of EnviTec stabilised in the second quarter in spite of a difficult environment. Between April and June, we increased our sales revenues by 5.4% from EUR 33.5 million in the first three months to EUR 35.3 million. The Own Plant Operation segment again made the biggest contribution with EUR 16.1 mio. to total sales revenues. Group earnings before interest and taxes (EBIT) improved from EUR -1.1 million to EUR -0.6 million. Total sales revenues for the first six months of 2013 amounted to EUR 68.7 million, down 17.0% on the previous year. First-half EBIT totalled EUR -1.7 million, compared to EUR -1.8 million in the previous year.

The above is attributable to the uncertainty prevailing in the German biogas market – the largest biogas market in the world. There is no confidence in the legal basis. This is unlikely to change in the coming months. In Italy, which used to be the second most important output market, the legal framework changed fundamentally at the beginning of the year, but there is still an attractive market for small plants up to 300 kW. This is something the biogas sector first had to get used to. We have responded by adding new compact plants to our portfolio. Thanks to their flexible container structure, they can be installed and taken into operation very quickly. These

new plants will open up opportunities for our company also in Germany and other countries.

The positive trend seen in the second quarter should continue in the second half of the year. This is not least suggested by the increase in incoming orders. At EUR 23.9 million – thereof EUR 13.5 million from German customers – orders received in the second quarter were three times as high as in the first three months of 2013. This gives us an order backlog of EUR 98.8 million at the half-year stage. The situation in the plant construction sector will nevertheless remain difficult, as the ongoing political uncertainty will again make itself felt in the second half of 2013. Attractive markets such as France and the UK are currently unable to offset the low demand in Germany and Italy. The sales and earnings trend in the Own Plant Operation segment should be very positive in 2013 and also in 2014. Having increased production capacity to 52 MW in 2012, the segment's sales revenues should rise to approx. EUR 55 million in 2013 and the operating result should be clearly positive. 2013 will see us focus on optimising the existing plants and install at least 5 MW of new capacity. This should send production capacity rising to a good 57 MW by the end of 2013.

Against this background, we confirm our sales forecast for the full year, which provides for sales revenues of between EUR 140 million and EUR 160 million. Earnings before interest and taxes should be positive.

Olaf von Lehmden Jürgen Tenbrink CEO CTO

CFO CCO

Jörg Fischer Roel Slotman

GROUP INTERIM BUSINESS REPORT

of EnviTec Biogas AG for the period from 01 January to 30 June 2013

1. Corporate structure

Headquartered in Lohne, Germany, EnviTec Biogas AG is a leading manufacturer and operator of biogas plants. We cover the full value chain for the production of biogas - from planning through turnkey construction to operation and biological services. Our customer-oriented construction has set standards in terms of reliability and profitability. EnviTec plants can produce clean energy from all types of feedstock from organic waste to renewable resources. Our subsidiaries, joint ventures and sales offices give us a presence in some 20 countries.

The corporate structure reflects the company's four divisions, Plant Construction, Own Plant Operation, Service and Energy. All divisions are closely integrated in strategic, technical and financial terms. The economic performance has so far been determined primarily by Plant Construction and the direct and indirect subsidiaries in Germany and abroad. The Plant Construction segment essentially comprises the parent company, EnviTec Biogas AG. The parent company's business purpose also includes the holding of investments in the plant construction sector of project companies. The basis of consolidation comprises 143 fully consolidated companies, 3 more than in the previous year.

2. Macroeconomic and sector performance

Macroeconomic performance

The world economy is in a phase of moderate growth. According to the latest forecast published by the International Monetary Fund (IMF), the global gross domestic product will grow by 3.1% in the full year 2013, although the IMF is of the opinion that the risks of a further slowdown in economic activity dominate. Two factors play an especially important role in this context; first the risks arising from the European debt and financial crisis; second the world economy's dependence on growth in the emerging countries, which is having an increasingly adverse impact on global economic activity in the current phase of weakness. The emerging and developing countries' share in the world economy has doubled from 20 to 40% between 2000 and 2013. The economic slowdown in the emerging countries is now leading to negative effects for the world market. While the emerging and developing countries are projected to grow by 5.0% in 2013, Brazil will probably post a growth rate of only 2.5%. In China, growth has settled at 7.8%, i.e. below the 8% mark, which is an important threshold for creating employment for the country's population of over 1.3 billion.

The economic output of the industrialised countries will grow by only 1.2% in 2013. In particular, the eurozone countries will remain in a recession for another year. With GDP having decreased by 0.6% in 2012, the IMF projects an 0.6% decline also for 2013, to be followed by a growth rate of 0.9% in 2014. The European Commission, too, anticipates a moderate decline by 0.1% for the European Union (EU) as a whole. In contrast to the previous years, Germany will provide only little stimulation for the European economy in 2013, with the IMF projecting only 0.3% growth for the German economy. German institutes such as the Kiel Institute for the Word Economy (IfW) are not much more optimistic. Following a

weak first quarter (+0.3%), the IfW expects 0.5% growth for the full year 2013.

Performance of the biogas sector

The legal frameworks play a very important role for manufacturers and operators of biogas plants. In Germany, the Renewable Energy Sources Act (EEG) constitutes the relevant basis for the biogas sector. In addition, the feeding of refined biogas into the natural gas grid is governed by the German Gas Grid Access Directive (GasNZV). In spite of the existing EEG 2012, the German biogas market will continue to be characterised by great uncertainty in 2013. The ongoing discussion about the future legal framework and potential retroactive amendments to the tariffs for electricity from renewable sources are causing great uncertainty among all players along the value chain, from project development and financing to plant construction and operation. In the view of the Management Board, due to this lack of political and economic planning certainty, there is only little demand for biogas plants.

In Italy, government subsidisation of biogas plants was amended with effect from 1 January 2013, offering opportunities for biogas plants with a capacity of less than 300 kW. EnviTec responded to this change at an early stage and has since offered the corresponding plant concepts. After the strong year 2012, demand is nevertheless expected to decline during a transitional period. EnviTec believes that the political environment for biogas plants has improved in the still young French and UK markets, where the positive aspects of biomethane feeding are increasingly appreciated and new incentive systems are implemented to support market penetration. EnviTec has been active in these markets for several years and has gained a good market position.

3. Business performance in the first half year

EnviTec Biogas was able to stabilise its business performance in the second quarter of 2013 in what was a difficult market environment. While the Own Plant Operation segment continues to perform well, the Plant Construction segment is affected by the challenging environment in Germany and the new legal framework in Italy, which are the main output markets of EnviTec.

Own Plant Operation

At the end of June 2013, the segment operated plants with an electrical output of 52 MW – of which 34.8 MW were fully consolidated and 17.2 MW were accounted for using the equity method – 7.1 MW more than in the previous year. In 2013, EnviTec will primarily focus on optimising and repowering existing plants. Moreover, plants with a total capacity of 5 MW will be taken into operation in the course of the year.

Order backlog increases in Q2

While the uncertainty about the future legal framework for the operation of biogas plants in Germany continued to affect the order situation in the second quarter, EnviTec was nevertheless able to grow its order book during this period. The company received orders worth EUR 23.9 million in the second quarter, of which approx. EUR 10.4 million or 43.5% came from international customers. At the end of the quarter, EnviTec had an order backlog of EUR 98.8 million. German customers accounted for EUR 68.3 million of this total, while international customers accounted for EUR 30.5 million, including EUR 11.3 million from French customers. Orders from Italian customers totalled EUR 4.2 million as of the balance sheet date.

As in the previous years, EnviTec Biogas is not dependent on individual key accounts but has a very broad customer base. On the balance sheet date, the Own Plant Operation segment accounted for 6.1% of the total order backlog.

New subsidiary in the container construction segment

In the first Half of 2013, EnviTec Biogas and Alfons Greten Betonwerk GmbH & Co. KG jointly established EnviTec-Greten Behälterbau GmbH & Co. KG with the aim of pooling their strengths and taking better advantage of synergies in the field of agricultural container construction. Following the joint market entry, the joint venture anticipates a stable order situation for the first year. The workforce has been drafted from EnviTec's former assembly, construction management and static departments.

Annual General Meeting approves special dividend of EUR 1.00

At the Annual General Meeting on 27 June 2013, 99.99% of the shareholders of EnviTec Biogas AG approved the profit appropriation proposal, which provided for the payout of a special dividend of EUR 1.00 per eligible share. About 85% of the share capital was represented at this year's Annual General Meeting. All items on the agenda were approved by a great majority. The company also explained the planned change to the Entry Standard. With a view to cutting costs, the share will be transferred from the Prime Standard to the Entry Standard of Deutsche Börse's Open Market on

28 August 2013. The EnviTec share will then be traded in the Entry Standard starting 29 August 2013. The Entry Standard is also a quality segment characterised by high transparency. Moreover, the Designated Sponsor will continue to regularly quote buying and selling prices in order to ensure a liquid market in the shares going forward.

Employees

Qualified and motivated employees are important for the successful performance of a company. Due to the ongoing uncertainty about the future legal framework for the biogas industry in Germany – and beyond – EnviTec has implemented meaningful structural and personnel adjustments in the Plant Construction segment. Most of the personnel adjustments were made in the project implementation area, but jobs were also cut in administration and other areas. In addition, all foreign branches will be reviewed for sustainability and efficiency in the course of the year and their structures be adjusted accordingly. On 30 June 2013, EnviTec Biogas had 359 employees (previous year: 470) on its worldwide payroll. Most of them (276; previous year: 386) are based in Germany, with 83 (previous year: 84) employees working in the foreign locations of EnviTec Biogas.

4. Earnings, Net Worth and Financial Positions

Earnings performance

Compared to the first three months, sales revenues of EnviTec Biogas stabilised in the second quarter of 2013. Between April and June, the company generated revenues of EUR 35.3 million, up 5.4% on the first three months (Q1 2013: EUR 33.5 million). Compared to the second quarter of 2012, sales revenues dropped by 18.5% as had been expected. This decline is due to demand in the Plant Construction segment.

Sales revenues in the Own Plant Construction and Service segments increased.

Domestic sales remained almost constant. International sales fell from EUR 19.8 million to EUR 11.8 million.

Sales revenues in the first six months of 2013 totalled EUR 68.7 million, down 17.0% on the previous year (H1 2012: EUR 82.8 million).

The moderate demand for biogas plants in Germany and Italy in the first quarter is also reflected in EnviTec's earnings figures for the second quarter, although the situation stabilised compared to the first quarter. The drop in sales revenues in

the first six months of 2013 was also reflected in the cost of materials, which declined from EUR 55.6 million in the prior year period to EUR 44.0 million. The cost of materials as a percentage of sales decreased from 67.2% to 64.1%. Gross profit fell from EUR 30.6 million to EUR 26.9 million.

EnviTec's personnel expenses were reduced by 3.7% from EUR 10.9 million in the previous year to EUR 10.5 million in the first six months of 2013. Personnel expenses as a percentage of sales climbed from 13.2% to 15.3%. The increase in depreciation/amortisation from EUR 5.1 million to EUR 6.8 million is mainly attributable to the expansion of the Own Plant Operation segment. Other operating expenses, which compromises operating, administrative and selling expenses, were reduced from EUR 16.4 million to EUR 11.4 million.

Compared to the first three months of the year, earnings before interest and taxes improved from EUR -1.1 million to EUR -0.6 million in the second quarter. EBIT for the first six months thus totalled EUR -1.7 million (H1 2012: EUR -1.8 million).

The financial result declined from EUR 2.0 million in the previous year to EUR 0.1 million in the first half of 2013. Income tax in the amount of EUR -0.1 million led to a result for the period before minority interests of EUR -1.5 million, compared to EUR -0.2 million in the prior year period. The result for the first six months after minority interests amounted to EUR -1.4 million (H1 2012: EUR -0.9 million). Earnings per share stood at EUR -0.10 in the first half of 2013 (H1 2012: EUR -0.06).

Segment performance

Own Plant Operation

With many new biogas plants going on line in the previous year, the very positive performance delivered by EnviTec's Own Plant Operation segment in the first three months continued in the second quarter of 2013. The segment's secondquarter sales revenues were up by 75.0% on the previous year's EUR 9.2 million to EUR 16.1 million, while earnings before interest and taxes (EBIT) increased by 75.0% to EUR 2.1 million. The EBIT margin reached 13.1%. In addition, EnviTec received a profit of EUR 0.1 million from investments accounted for using the equity method in the second quarter.

Plant Construction

As had been expected, sales revenues in the Plant Construction segment declined in the second quarter 2013 in comparison to the same quarter last year sharply, namely from EUR 28.4 million in the previous year to EUR 10.4 million. The segment thus contributed 29.4% to total Group sales revenues (Q2 2012: 65.8%). Plant Construction's earnings before interest and taxes improved from EUR -3.5 million to EUR -1.7 million. It has to be noted, that in the first quarter one-time costs for structural adjustment in the plant construction segment in the amount of 0.7 million euros were included.

Service

Sales revenues in EnviTec's Service segment, which provides services related to the operation of biogas plants, increased from EUR 4.4 million to EUR 4.9 million. The segment's earnings before interest and taxes declined from EUR 1.0 million to EUR -0.9 million.

Net worth and financial position

The net worth and financial position of EnviTec Biogas remained sound at the half-year stage. This will facilitate the implementation of operational and strategic objectives such as the start-up of new business segments and the development of products matching the new framework conditions.

As of the balance sheet date on 30 June 2013, the equity capital of EnviTec Biogas amounted to EUR 168.0 million (31.12.2012: EUR 184.5 million). This contrasted with debt capital in the amount of EUR 145.0 million (31.12.2012: EUR 168.3 million), including EUR 61.8 million in short-term capital. Total assets amounted to EUR 313.0 million (31.12.2012: EUR 352.8 million). Accordingly, the equity ratio again reached a high level of 53.6% (31.12.2012: 52.3%).

Non-current assets of EnviTec Biogas increased moderately from EUR 159.2 million at the beginning of the year to EUR 163.0 million at the end of the second quarter. This is mainly attributable to the investments in the Own Plant Operation segment, with property, plant and equipment increasing by EUR 3.0 million compared to the beginning of the year. The company's current assets were reduced from EUR 193.6 million at the beginning of the year to EUR 150.0 million at the half-year stage. This is primarily due to reduced construction activities. Receivables from long-term construction contracts declined by EUR 28.8 million to EUR 19.6 million.

Liquidity analysis

A the end of June 2013, EnviTec Biogas had liquid funds in the amount of EUR 17.9 million (31.12.2012: EUR 20.7 million). In addition, the company has current assets of EUR 55.5 million. The company thus has sufficient cash to implement all its operational and strategic assets after the payout of the special dividend of EUR 1 per share. The cash flow from operating activities amounted to 25.8 million euros in the first half of the year 2013.

This could almost cover the negative cash flow from investment activities of 11.1 mio. EUR as well as the payout of 14.9 mio. EUR.

5. The EnviTec share

After a volatile first quarter 2013, the global capital markets showed dynamic growth in the second quarter. Driven by the robust US economy and the expansionary monetary policies pursued by the central banks, the DAX, the Dow Jones and the S&P 500 hit new all-time highs in May. Sentiment in the capital markets deteriorated somewhat at the end of the second quarter on speculation about an end of the US central bank's bond purchases and disappointing economic data from China. On balance, the German stock index climbed 2% to 7,959 points in the second quarter, gaining a total of 3.5% in the first six months of the year. The technology index stood at 946 points at the half-year stage, which represents an increase of approx. 14% during the first six months.

The EnviTec Biogas share opened the year 2013 at EUR 7.17. In the ensuing three months, the share price first moved within a range between EUR 6.47 and EUR 7.53. Having marked its annual low on 22 April it advanced again and closed the first six months on 28 June at EUR 7.20. In this context, the payout of the special dividend of EUR 1 per share should be taken into account. A total of 422,325 EnviTec shares were

traded (XETRA) in the first six months, which is equivalent to an average daily turnover of 3,610 shares.

Basic information on the share

ISIN DE000A0MVLS8
WKN A0MVLS
Stock exchange symbol ETG
Number of shares 15,000,000
Market capitalisation as at 28 June 2013 108 Mio. Euro
Highest price (11 January) 7.53 Euro
Lowest price (22 April) 5.99 Euro
Price on 28 June 2013 7.20 Euro
Earnings per share in first
six months of 2013
-0.10 Euro

All figures refer to XETRA prices

Development of the EnviTec Share by comparison

6. Related party disclosures

Group companies did not enter into any material contracts with members of the Executive Board or the Supervisory Board or with other key management personnel or with companies on whose management or supervisory boards those persons are represented. The same applies to close members of the families of those persons. Transactions with related entities are conducted on an arm's length basis.

7. Opportunity and risk report

In order to fulfil our shareholders' expectations, the Executive Board has to seize the opportunities that arise in the best possible way, which always entails certain risks. To understand and manage these risks, the Executive Board has installed an integrated risk management system, which also comprises the accounting-related internal control system pursuant to section 289 (5) and section 315 (2) (5) of the German Commercial Code (HGB).

The risk situation of EnviTec Biogas AG was presented in detail in the combined Group Management Report for the period ended 31 December 2012. Typical risks were listed and described in detail in these reports. The Executive Board is currently not aware of other risks and opportunities that go beyond the presentation of the Combined Group Management Report as of December 31, 2012. The Executive Board is also currently not aware of any risks that could jeopardise the continued existence of the company.

8. Post balance sheet events

No events of material importance occurred after the balance sheet date on 30 June 2013.

9. Forecast report

According to the forecast of the International Monetary Fund (IMF), the world economy will grow by 3.1% in 2013. This growth will be driven primarily by the emerging countries. While the eurozone economy is expected to contract by 0.6%, the sentiment in Germany remains good. The Ifo Business Climate Index, which is an important sentiment indicator for the German economy, increased for the third consecutive time in July 2013. Sentiment in the manufacturing sector is particularly positive. By contrast, the German Engineering Federation (VDMA) projects a 1% decline for Germany's mechanical and plant engineering sector.

The ongoing political uncertainty will also make itself felt in the second half of 2013. Attractive markets such as France and the UK are currently unable to offset the low demand in Germany and Italy, which is why the company believes that the second half of the financial year will be a challenging period for the Plant Construction segment. New products, which will be presented in the second half of the year, are expected to stimulate demand – especially in Germany and Italy – and to improve the outlook for 2014.

The sales and earnings trend in the Own Plant Operation segment should be very positive in 2013 and also in 2014. Having increased production capacity to 52 MW in 2012, the segment's sales revenues should rise to approx. EUR 55 million in 2013 and the operating result should be clearly positive. 2013 will see EnviTec focus on optimising the existing plants and install at least 5 MW of new capacity. This should send production capacity rising to a good 57 MW at the end of 2013. The positive sales trend in the Service segment should continue in 2013.

Total Group revenues should amount, as shown in the report as of March 31, 2013, to between EUR 140 million and EUR 160 million in 2013 and thereof under the forecast as of December 31, 2012. As far as earnings are concerned, the Executive Board expects a positive operating result for the full year 2013 in spite of the restructuring charges and the sharp drop in plant construction revenues. More concrete projections will be published during the second half of the year.

INTERIM FINANCIAL STATEMENTS

Consolidated profit and loss account

04/01–06/30/2013 01/01–06/30/2013 04/01–06/30/2012 01/01–06/30/2012
1, Sales 35,275,688 68,736,694 43,303,886 82,834,120
2, Other operating income 1,401,059 2,198,807 1,289,617 3,372,628
Total performance 36,676,748 70,935,502 44,593,503 86,206,749
3, Cost of materials 21,946,094 44,029,896 29,757,012 55,639,788
Gross result 14,730,654 26,905,606 14,836,491 30,566,961
4, Staff costs
> Wages and salaries 3,838,053 8,463,389 4,555,563 8,733,267
> Social security, pensions and other benefits 939,143 2,020,484 1,192,574 2,179,590
5, Depreciation 3,695,780 6,779,937 2,669,463 5,130,697
6, Other operating expenses 6,877,649 11,369,671 6,518,631 16,360,417
Operating income -619,971 -1,727,874 -99,740 -1,837,009
7, Result from at-equity valued participations 145,680 628,056 182,750 143,974
8, Interest earnings 662,904 1,307,199 1,200,226 3,426,831
9, Interest expenses 1,013,608 1,808,970 706,722 1,529,473
10, Pretax income -824,995 -1,601,589 576,513 204,322
11, Income tax expense -170,534 -137,179 171,859 370,938
12, Net income -654,461 -1,464,410 404,654 -166,616
13, Income inputable to minority interests 95,952 -39,024 -54,747 710,333
14, Consolidated loss/profit -750,413 -1,425,385 459,401 -876,948
Earnings per share in EUR
Earnings per share in EUR (basic) -0.05 -0.10 0.03 -0.06
Earnings per share in EUR (diluted) -0.05 -0.10 0.03 -0.06
Weighted average shares outstanding
Basic 14,850,000 14,850,000 14,850,000 14,850,000
Diluted 14,850,000 14,850,000 14,850,000 14,850,000

Consolidated Statements of Comprehensive Income

04/01–06/30/2013 01/01–06/30/2013 04/01–06/30/2012 01/01–06/30/2012
Net income -750,413 -1,425,385 459,401 -876,948
Changes in fair value of derivates designated
as cash flow hedges
42,179 90,466 0 0
Changes recognized outside profit and loss
(Cash flow hedges)
42,179 90,466 0 0
Exchange differences on translation of opera
tions outside the euro zone
1,906 -18,981 9,455 -51,892
Changes recognized outside profit and loss
(exchange differences)
1,906 -18,981 9,455 -51,892
Other comprehensive income (changes recognized
outside profit and loss)
44,084 71,485 9,455 -51,892
Total comprehensive income -706,329 -1,353,900 468,856 -928,840
of which attributable to minority interests 95,952 -39,024 -54,747 710,333
of which attributable to EnviTec Biogas AG
shareholders
-802,281 -1,314,875 523,603 -1,639,173

Consolidated balance sheet

Assets

A. Fixed assets 06/30/2013 12/31/2012
I. Intangible Assets 4,873,433 4,850,048
II. Tangible Assets 128,972,234 126,025,763
III. Shares in at-equity valuation of participations 10,111,720 8,124,524
IV. Participating interests 1,500 0
V. Other long-term receivables 16,768,829 17,901,325
VI. Deferred taxes 2,224,930 2,320,094
Total fixed assets 162,952,645 159,221,754
B. Current assets
I. Stocks 27,162,623 34,309,425
II. Receivables from long-term construction contracts 19,557,906 48,387,817
III. Trade receivables 26,921,328 29,751,203
IV. Other short-term financial assets 55,490,917 56,554,342
V. Tax receivables 3,030,713 3,919,222
VI. Liquid funds 17,870,590 20,650,282
Total current assets 150,034,075 193,572,291
Total assets 312,986,721 352,794,045

Equity and liabilities

A. Equity 06/30/2013 12/31/2012
I. Subscribed capital 14,850,000 14,850,000
II. Capital reserves 132,995,741 132,995,741
III. Revenue reserves
1. Currency translation reserves
2. Other reserves
3. Other revenue reserves
-98,014
421,173
10,000,000
-79,033
330,707
10,000,000
IV. Retained earnings brought forward 11,823,288 26,047,926
V. Minority interests -558,927 -848,551
VI. Consolidated profit -1,425,385 1,181,442
Total equity 168,007,877 184,478,233
B. Non-current liabilities
I. Long-term provisions 932,700 840,000
II. Long-term financial liabilities 80,788,148 81,984,291
III. Other long-term liabilities 704,974 655,089
IV. Deferred taxes 776,806 3,833,117
Total noncurrent liabilities 83,202,628 87,312,497
C. Current liabilities
I. Short-term provisions 8,922,325 12,331,310
II. Short-term financial liabilities 32,557,917 32,165,651
III. Trade payables 13,597,226 28,088,875
IV. Liabilities from long-term construction orders 2,169,737 1,647,498
V. Other short-term liabilities 3,911,564 5,911,872
VI. Tax liabilities 617,446 858,108
Total current liabilities 61,776,215 81,003,315
Total equity and liabilities 312,986,721 352,794,045

Consolidated equity capital change statement

Subscribed
capital
Capital reserves Revenue reserves Currency translations
reserves
Other revenue
reserves
Balance at
01/01/2012
14,850,000 132,995,741 478,452 -74,447 10,000,000
Reclassifications 0 0 0 0 0
Minority interests 0 0 0 0 0
Income 0 0 0 0 0
Other comprehensive
income
0 0 0 -51,892 0
Balance at
06/30/2012
14,850,000 132,995,741 478,452 -126,339 10,000,000
Balance at
01/01/2013
14,850,000 132,995,741 330,707 -79,033 10,000,000
Reclassifications 0 0 0 0 0
Minority interests 0 0 0 0 0
Income 0 0 0 0 0
Profit distribution 0 0 0 0 0
Increase of invest
ments in subsidiaries
recognized in equity
0 0 0 0 0
Other comprehensive
income
0 0 90,466 -18,981 0
Balance at
06/30/2013
14,850,000 132,995,741 421,173 -98,014 10,000,000
Other revenue
reserves
Retained earnings
brought forward
Consolidated
profit/loss
Total shareholders
interests
Minority interests Total
10,000,000 18,497,937 7,549,989 184,297,672 -444,821 183,852,851
0 7,549,989 -7,549,989 0 0 0
0 0 0 0 -317,907 -317,907
0 0 -876,948 -876,948 710,333 -166,615
0 0 0 -51,892 0 -51,892
10,000,000 26,047,926 -876,948 183,368,832 -52,395 183,316,437
184,478,233 -848,551 185,326,783 1,181,442 26,047,926
0 0 0 -1,181,442 1,181,442
-227,431 -227,431 0 0 0
-1,464,410 -39,024 -1,425,385 -1,425,385 0
-14,850,000 0 -14,850,000 0 -14,850,000
0 556,080 -556,080 0 -556,080
71,485 0 71,485 0 0
168,007,877 -558,927 168,566,803 -1,425,385 11,823,288

Consolidated capital flow statement

01/01 – 06/30/2013 01/01 – 06/30/2012
Consolidated net loss/income before minority interests -1,464,410 -166,616
Income tax expenses -137,179 370,938
Net interest income 501,771 -1,897,358
Profit (-) losses (+) from at equity companies -542,697 -161,324
Paid income tax -2,468,299 -2,175,903
Depriciation on tangible and intangible assets 6,779,937 5,130,697
Decrease in other provions -3,316,285 2,297,965
Profit (-) losses (+) on the sale of tangible assets -48,480 -46,506
Gross cash flow -695,642 3,351,893
Decrease of stocks 7,146,802 5,817,008
Decrease of receivables from long-term construction contracts 28,829,911 14,481,952
Increase/Decrease of liabilities from long-term construction orders 522,239 -3,391,429
Decrease of trade receivables 2,829,875 981,047
Decrease/Increase of trade payables -14,491,649 1,444,046
Decrease of other short term financial assets 1,063,425 14,514,960
Decrease/Increase in other long-term receivables 1,132,496 -13,518,889
Decrease of deferred taxes 95,164 111,209
Decrease/Increase of other short-term liabilities -2,000,308 2,284,764
Decrease/Increase of tax receivables 888,509 -613,908
Decrease of liabilities from transaction tax and tax deductions -691,495 -4,280,954
Other non cash payments -155,946 -369,795
Interest received 1,307,199 3,426,831
Flow from operative activities (net cashflow) 25,780,583 24,238,735
01/01 – 06/30/2013 01/01 – 06/30/2012
Proceeds from disposals of tangible assets 330,185 173,882
Payments for intangible assets -129,721 -2,877,001
Payments for tangible assets -9,901,776 -18,831,846
Proceeds from partnership drawing for at-equity investments 290,000 150,000
Payments for at-eaquity investments -1,734,500 -1,475,210
Payments für investements in participating interests -1,500 0
Inflow of cash and cash equivalents due to business combinations 0 118,407
Flow from investment activities -11,147,312 -22,741,768
Proceeds from bank loans 14,331,821 10,739,823
Payments for debt redemption -6,524,980 -14,811,414
Decrease/Increase in other long-term financial liabilities 19,937 -995,339
Decrease/Increase in other short-term finacial liabilities
(without short-term bank loans and overdrafts)
-8,580,770 2,820,031
Payments to shareholders -14,850,000 0
Interest paid -1,808,970 -1,529,473
Flow/Inflow from financial activities -17,412,962 -3,776,372
Change in cash and cash equivalents -2,779,692 -2,279,405
Cash balance on 1 January 20,650,282 13,853,055
Cash and cash equivalents balance on 30 June 17,870,590 11,573,650

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

of EnviTec Biogas AG for the period from 01 January to 30 June 2013

1. Principles applied in the preparation of the interim financial statements

EnviTec Biogas AG, Lohne, continued to apply the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), London, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), in preparing its consolidated financial statements for the 2012 financial year. Accordingly, this set of abbreviated financial statements as of June 30, 2013 was also prepared in accordance with IAS 34 regulations.

The interim financial statements were reviewed by the auditors.

The interim financial statements were prepared in euros. All amounts are rounded to full euros unless otherwise stated.

Individual items are combined for purposes of clarity in both the income statement and the balance sheet, and are explained in the notes to the financial statements.

2. Seasonal influences

Being a manufactor of biogas plant, Envitec Biogas AG is exposed to weather-related, seasonal influences. Depending on the duration and intensity of cold spells, construction activities may be continued only with restrictions, or not at all. In the first half year of 2013, weather influences had a greater impact than in the first half year of 2012.

3. Accounting and valuation principles

In preparing these interim consolidated financial statements and calculating the previous year's comparable figures, the company consistently applied the same accounting and valuation principles as in the 2012 consolidated financial statements. A detailed description of these methods was published in the notes to the consolidated financial statements in the 2012 annual report. They can also be downloaded from the internet at www.envitec-biogas.com.

The EnviTec Group is required to apply for the first time from the 2013 financial year the following new standards, amendments and interpretations that were adopted by the EU:

IAS 1 Presentation of Items of Other
Comprehensive Income
IFRS 1 First-time Adoption of International Financial
Reporting Standards: Severe Hyperinflation and
Removal of Fixed Dates for First-time Adopters
IFRS7/IAS 32 Financial Instruments: Disclosures
IFRS 13 Fair Value Measurement
IAS 19 Employee Benefits
IAS 12 Deferred Taxes: Recovery of Underlying Assets
IFRIC 20 Stripping Costs in the Production Phase of a
Surface Mine

IAS 1 relates to the presentation of items included in the statement of recognized income and expenses. Now, these must be divided into two categories, depending on whether they are to be recognized in the income statement in the future. The EnviTec Group applies the new Standard IAS 1 since 1th January 2013 and adjusted the Presentation of Items of Other Comprehensive Income in the interim report.

IFRS 13 defines general standards for measuring fair value. Furthermore, the standard expands disclosure requirements on fair valuations in the notes. This also applies to interim reporting according to IAS 34 to a certain extent.

IFRS 13 has no effect on the valuation within the consolidated financial statement.

4. Scope of consolidation and consolidation methods

The consolidated financial statements contain those companies in which EnviTec Biogas AG directly or indirectly holds the majority of the voting rights (subsidiaries), insofar as their influence on the Group's net assets, financial position, and results of operations is not of subordinate significance. Inclusion commences at the time when the possibility of control arises, and ends when the possibility of control ceases.

Including EnviTec Biogas AG, the consolidated financial statements as of December 31 2012 comprise 210 companies, of which 143 were fully consolidated. Changes to the consolidation scope in the 2012 financial year were presented in detail in the notes to the consolidated financial statements in the 2012 annual report.

In the first half year 2013 EnviTec Biogas AG founded together with Alfons Greten Betonwerk GmbH a joint venture. The new company is named EnviTec-Greten Behälterbau GmbH & Co. KG. The company's purpose is the construction of tanks for agricultural purposes.

On 23 January 2013 EnviTec Biogas AG acquired the remain-

ing 15% of the share capital of EUR 10k of Biogas Operating Holding s.r.l at a price of EUR 165k. The acquisition did not lead to a change of status and was treated as a transaction between equity investors and recognised in equity.

Furthermore EnviTec acquired another share of 3,68% for the amount of EUR 262,104.47 of the EnviTec Beteiligungs GmbH & Co. KG. Therefore EnviTec's overall share holding amounts to 98.6%.

In addition, one new foreign company accounted for using the equity method were established. The purpose of the company is the operation of biogas plants in Belgium.

Furthermore 50% of shares of a company in Germany were acquired. The purpose of the company is the operation of biogas plants.

Changes to the consolidation scope between December 31, 2012 and June 30, 2013 are as follows:

Germany Abroad Total
EnviTec Biogas AG and
consolidated companies
12/31/12 111 32 143
Additions/Disposals 0 0 0
06/30/13 111 32 143
Companies measured at
equity
12/31/12 60 7 67
Additions of at-equity
measured companies
4 1 5
06/30/13 64 8 72

5. Presentation of financial instruments

The table below shows the measurement categories and carrying amounts of financial assets and liabilities:

IAS 39 measuring
category
Carrying amount
06/30/2013
Fair value
06/30/2013
Carrying amount
12/31/2012
Fair value
12/31/2012
Assets
Participating interests n.a. 1,500 n.a.
Other non-current receivables LAR 16,769 18,964 17,901 20,907
Trade receivables LAR 26,921 26,921 29,751 29,751
Loans to third parties LAR 16,887 16,887 19,068 19,068
Receivables from associated companies LAR 20,906 20,906 21,526 21,526
Receivables Shareholders LAR 30 30 0 0
Interest claims LAR 75 75 65 65
Other short-term receivables LAR 8,295 8,295 6,357 6,357
Currency forward LAR 17,871 17,871 20,650 20,650
Liquid funds HfT 23 23 4 4
Liabilities
Non-current financial liabilities FLAC 80,788 76,163 81,984 76,147
Current financial liabilities FLAC 21,918 23,172 18,847 18,847
Trade payables FLAC 13,597 13,597 28,089 28,089
Currency forward HfT 13 13 46 46
Swap n.a 80 80 205 205

Thereof aggregated by measurement categories pursuant to IAS 39:

2013 in kEUR 2012 in kEUR
Loans and Receivables (LAR) 107,754 115,318
Financial Liabilities at Amortised Costs (FLAC) 116,303 128,920
Held for Trading 10 -42

The participating interests comprises of shares of a company for which there are no prices of an active market available. Therefore a reliable calculation of the fair value of those financial instruments is not possible. During this year there have been no disposals nor will there be any time soon.

In view of the short terms of trade receivables, other assets (excl. derivative financial instruments) as well as cash and cash equivalents, it is assumed that the carrying amount is equivalent to the fair value. It is assumed that the carrying amount of current financial liabilities (excl. derivative financial instruments) is equivalent to the fair value. The fair value of non-current financial liabilities and financial assets is derived from the present value of the expected future cash flows. Discounting is performed at the rates applicable as of the balance sheet date.

The fair value of the long-term financial liabilities of EUR 453k (YE 2012: EUR 476k) was determined using the DCF method and relates to the obligation to compensate minority shareholders/ partners, specifically the atypical silent partners in Biogas Nordholz GmbH, Minden. The fair value was determined by the future cashflows from the company's forecast. The underlying WACC is 6.55% (previous year: 6.55%). The maximum default risk results from the recognition in the balance sheet and amounts to EUR 453k (YE 2012: EUR 476k). According to the fair value hierarchy

defined in IFRS 7, this is a fair value of level 3 (measurement using factors not based on observable market data). The change in the fair value by EUR -23k (previous year: EUR 61k) was recognised in the interest expenses. Liabilities to minority shareholders totalled EUR 5,131k (YE 2012: EUR 5,008k). They were accounted for in accordance with the anticipated acquisition method.

The fair value of the currency forwards and the swaps is a level 2 fair value (measurement based on parameters that are not quoted prices used at level 1 but which are observable for the financial instrument either directly (i.e. as a price) or indirectly (i.e. derived from prices)). The fair value is determined using generally accepted valuation methods.

6. Segment reporting

Segment reporting for the period from January 1 to June 30 (in kEUR):

2013 in TEUR Plant Construction Service Own Plant Operation Energy Reconciliation Group
Revenue
- External revenue 21,116 8,967 30,566 8,088 0 68,737
- Internal revenue 2,505 2,198 4,358 33 -9,094 0
Operating earnings -5,167 -1,087 4,629 -103 0 -1,728
Segment assets 254,957 14,393 168,372 4,935 -129,670 312,987
2012 in TEUR Plant Construction Service Own Plant Operation Energy Reconciliation Group
Revenue
- External revenue 54,586 8,072 18,101 2,075 0 82,834
- Internal revenue 2,157 1,312 2,973 1,389 -7,831 0
Operating earnings -4,871 331 2,809 -106 0 -1,837
Segment assets 240,735 11,732 120,693 1,813 -72,329 302,644
Reconciliations (EBIT) 2013 2012
Segment earnings (EBIT) -1,728 -1,837
Adjustment of unallocated expenses
and income
126 2,041
Consolidated pretax profit -1,602 204

EnviTec Biogas AG is required by IFRS 8 to include segment reporting in the notes to the consolidated financial statements. IFRS 8 requires business segments to be demarcated on the basis of the internal reporting of divisions that the company's key decision-maker regularly reviews in order to reach decisions concerning the distribution of resources to

this division, and to measure its profitability.

Due to the product-oriented management of the EnviTec Group's business, the company continued to identify the individual segments of Plant Construction, Own Plant Operation and Service as relevant segments that are also used for internal reporting purposes. The segment Energy has been integrated in 2012 into the internal reporting, Plant Construction includes the general planning, approval planning and construction of biogas plants, while the Service segment comprises the technical and biological maintenance of biogas plants. The Own Plant Operation segment covers the biogas plants operated by the company.

7. Notes on selected items of the consolidated balance sheet and consolidated income statement

7.1. Tangible assets

Tangible assets increased by kEUR 2,946 primarily because of purchases made by the own plant operation segment.

Property, plant and equipment 063/30/2013 12/31/2012
Land, similar rights and buildings including buildings on third-party land 30,733,911 29,155,885
Technical plant and machinery 87,767,606 64,558,836
Other plant, operating and office equipment 7,318,495 8,874,330
Prepayments and plant under construction 3,152,222 23,436,712
128,972,234 126,025,763

7.2.Construction contracts

Construction contracts are as follows as of June 31, 2013:

Gross amount due to customers for biogas plant contract work in progress 06/30/2013 12/31/2012
Accumulated costs incurred 60,759,501 119,160,832
Accumulated profits recognized 5,679,344 15,486,071
Accumulated advance payments received including progress billings -46,880,939 -86,259,086
Receivables from long-term construction contracts 19,557,906 48,387,817

In the first half year 2013 revenues of EUR 14,079k were generated from receivables from long-term construction contracts. Receivables from long-term construction contracts declined since 31.12.2012 by EUR 28,830k due to fulfillments of orders and the overall difficult order situation.

For further explanations please see the group interim Business Report.

Gross amount due to customers for biogas plant contract work in progress 06/30/2013 12/31/2012
Accumulated costs incurred 2,037,464 4,396,549
Accumulated profits recognized 647,371 749,234
Accumulated advance payments received including progress billings -4,854,572 -6,793,282
Liabilities from long-term construction contracts 2,169,737 1,647,498

In the first half year 2013 revenues of EUR 1.715 k were generated from liabilities from long-term construction contracts.

7.3. Financial liabilities

Financial liabilities are composed as follows:

Financial liabilities 06/30/2013 12/31/2012
Total of which current Total of which current
Bank borrowings 95,801,638 20,565,696 87,994,797 11,592,660
Liabilities to minority shareholders 6,360,098 807,891 6,298,525 814,610
Advance payments received 10,560,618 10,560,618 18,846,961 18,846,961
Other financial liabilities 544,069 544,069 804,231 705,991
Liabilities from derivate financial instruments 79,642 79,642 205,429 205,429
113,346,065 32,557,916 114,149,943 32,165,651

7.4. Earnings per share

Undiluted earnings per share are calculated by dividing the consolidated net income by the weighted average number of shares in circulation during the financial year. The calculation is based on the income statement, and takes the share repurchase program into consideration.

There were no circumstances during the reporting period that could have resulted in divergent diluted earnings per share.

8. Other remarks

8.1. Events of particular significance during the reporting period and subsequent events

No events occured after the balance sheet date.

8.2.Contingent liabilities and other financial obligations

Contingent liabilities

As of the reporting date, the Group had extended a guaranty in a total amount of EUR 1,000k towards Bremer Landesbank for obligations of four fully consolidated subsidiaries and a subsidiary accounted for using the equity method (previous year: EUR 1,000k). No claims are expected to be raised under this guaranty.

Moreover, the Group has extended a guaranty in an amount of EUR 200k (previous year: EUR 200k) towards Sparkasse Rotenburg-Bremervörde for obligations of a subsidiary accounted for using the equity method. The risk of claims being raised under this guaranty is below 50%.

The Group has issued a guaranty to VR Bank Dinklage-Steinfeld eG for obligations in an amount of EUR 250k of another company accounted for using the equity method. The risk of claims being raised under this guaranty is below 50%.

The Group has undertaken a secure all receivables due to Bremer Landesbank from a non-Group entity in the amount of EUR 2,500k. The risk of claims being raised under this guaranty is below 50%.

Other financial obligations

As of the balance sheet, the company has other financial liabilities from purchase commitments in an amount of kEUR 978 (31.12.2012: kEUR 2,316). They are due within one year.

Other financial obligations from lease and licence agreements do not differ significantly to annual report dated 31. Dec. 2012.

8.3. Related parties disclosure

The consortium agreement between von Lehmden Beteiligungs GmbH, Lohne, Ruhe Verwaltungs GmbH, Lüsche and TS Holding GmbH, Visbek, has been annuled as per 27.06.2013.

In the first half of 2013 there have been no more considerable transactions towards related parties besides the ones already mentioned as per 31.12.2012

8.4.Dividend payment

On 28.06.2013 dividend of 1 EUR per eligible share was paid.

8.5.Corporate officers

Executive Board

The Executive Board was composed of the following members during the reporting period:

Olaf von Lehmden, Lohne Chairman of the Board (CEO)

Jörg Fischer, Weyhe-Erichshof Finance Director (CFO)

Roel Slotman, Enter/Niederlande International Sales Director (CCO)

Jürgen Tenbrink, Steinfurt Technial Director (CTO)

The Executive Board members held no further mandates.

Supervisory Board

The following members were appointed to the Supervisory Board during the reporting period:

Bernard Ellmann (Chairman)

Hans-Joachim Jung (Vice Chairman)

Michael Böging

Lohne, August 28, 2013

CEO CTO

Olaf von Lehmden Jürgen Tenbrink

Jörg Fischer Roel Slotman CFO CCO

9. Declaration of the legal representatives in accordance with WpHG

"To the best of our knowledge and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statement give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year."

Lohne, August 28, 2013

Olaf von Lehmden Jürgen Tenbrink CEO CTO

CFO CCO

Jörg Fischer Roel Slotman

10. Review Report

To EnviTec Biogas AG, Lohne

We have reviewed the condensed interim consolidated financial statements of EnviTec Biogas AG, Lohne, comprising consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and selected explanatory notes, together with the interim group management report of EnviTec Biogas AG, Lohne, for the period from January 1 to June 30, 2013, that are part of the semi annual financial report pursuant to § 37w (2) WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the condensed interim consolidated financial statements in accordance with those IFRS (International Financial Reporting Standards) applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility of the company's Board of Management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.

We conducted our review of the condensed interim consolidated financial statements and of the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer (IDW)). Those standards require that we plan and perform the review such that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable for interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's opinion.

Based on our review no matters have come to our attention that cause us to presume that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Munich, August 28, 2013

Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

gez. Hager Wirtschaftsprüfer

gez. Pantze Wirtschaftsprüfer

FINANCIAL CALENDAR

29 AUGUST 2013

Results Q2 2012

IMPRINT

PUBLISHER

EnviTec Biogas AG Industriering 10 a 49393 Lohne Tel.: +49 4442 8016-8100 Fax: +49 4442 8016-98100 E-Mail: [email protected] www.envitec-biogas.de

INVESTOR RELATIONS/

MARKETING/ PUBLIC RELATIONS Katrin Selzer Tel.: +49 2574 8888-810 Fax: +49 2574 8888-100 E-Mail: [email protected]

CONCEPT, REALIZATION

Kreutzmann Unternehmenskommunikation, Hamburg

TEXT

IR.on Aktiengesellschaft, Köln

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